That is the most important spiritual question in the world. Jews that take their writings very literal don't believe Jesus fulfilled the prophecies necessary for him to be the Messiah. Christians take Creation, the flood, the virgin birth, the devil, hell, the resurrection etc. all very literal. Since Holy Books have stories that are presented as historical events, but they have elements of myth in them, they could be real events that were embellished. Or, fictional events to make spiritual points. Or, they are totally, literally true, even the myth-sounding parts. I personally like the first explanation. Unfortunately, fundamentalists take the third way. The second way, of saying it is all mystical and symbolic kind of works for me too
There are many reasons to say that Authors of Bible have written Figurative verses. Some examples of them I have already given here. Jesus said: "let dead bury their dead". "Baptizing with Fire". The story that Jesus tells about the old man's son who was dead and now is alive, was lost now is found. They all proves that these scriptures contain Metaphors.
Now, the question was how realize when and where it is literal.
These Authors said the Scriptures are veiled, and sealed with seven seals. that scriptures in sealed in also mentioned many times in Old Testament also.
This point can be established from Bible:
"And even if our gospel is veiled, it is veiled to those who are perishing" 2 cori. 4:3
Those who are perishing means, those who are spiritually dead.
The idea is, to look at the Bible with the eye of spirit to see reality of things.
How is it veiled? The answer is, the Bible intentionally speaks in Parables so its hidden meaning is veiled for those who do not have a spiritual eye.
"The disciples came to him and asked, "Why do you speak to the people in parables?"
He replied, ....Therefore I speak to them in parables; because while seeing they do not see, and while hearing they do not hear, nor do they understand." Matthew 13: 10-13
So, what Jesus meant when He said "while seeing they do not see"?
He was saying their spiritual eye was blind.
In many other places in OT and NT it is said the Book is sealed and ordinary and learned men cannot understand it.
The story of Return of Elijah wants to teach that the Pharisees did not recognize Him, because they were after the physical body of Elijah, however Jesus and disciples had recognized that John the Baptist was the Spiritual Return of Elijah. All these stories, point to the fact that the Authors of Hebrew Scriptures, and New Testament, had intentionally wrote Figurative verses to veil. Otherwise, if John the Baptist was to come before Messiah, why should the Hebrew Scriptures say, Elijah comes? It could have made it easy so, The Pharisees could recognize John and not kill Him. Or why should Jesus talked in parables so they could not understand? The idea is, if a person uses spiritual eye, then he may discover these things in scriptures, but if they do not use their spiritual eye, and only sees the apparent meaning, then it is veiled to those who are spiritually dead and perishing.
But then what do you do with the Baha'i writings? Will someone come along and say they are all symbolic? That the Bab and Baha'u'llah weren't historical people?
The Baha'i Faith is different in this case, because, Baha'u'llah appointed Abdulbaha as the official infallible interpreter. Abdulbaha wrote great amount of Scriptures interpreting the Writings of Baha'u'llah. But in the Case of Bible, Jesus or Moses did not appoint an official infallible interpreter, who would write interpretation for them. This was left for Revelation of Baha'ullah, the Return of Christ to be fulfilled.
Another difference is that, the Existence and life of Moses and Jesus cannot be verified outside of Bible. There is NO real history Book on them. But the Baha'i Faith has History Books outside of Its own Scriptures.
So, in my view, the Bible Is NOT really a History Book. It should be examined as a Holy Book, that is inspired by God, and not a literal History Book.
If a person believes the Bible is the word of God then why not take it as being literal true in all accounts?
Because God did not say He is speaking literally, did He?
We should analyze these Books according to what the Authors said they are writing. If these Authors had said we are writing a literal history Book, then you are right. But I am afraid that is not the case.
Jesus said He was saying secrets using Parables.
And, who knows, maybe they are right. But, for myself, I don't believe even the most radical fundamentalist believes everything literally. For example plucking your eye out for lusting, or handling snakes and drinking poison as Jesus said in Mark. People will say that those are obviously not meant to be taken literal, but symbolically or they will come up with some other explanation. I'm not going to pretend to know what is the symbolic meanings, but I am enjoying hearing you come up with how many of the things in the Bible are symbolic to Baha'is
Essentially, in Baha'i View, the Revelations of God is Realistic. It's not like a few prophets came did some strange useless Miracles, and now God expects us believe in Him with these Miracles. In Baha'i View, the Revelations are much deeper and fruitful than just a show of Miracles.
Even if you are familiar with Mystics, such as Rumi, He also interpreted many of these stories Figuratively. An example of that is the Resurrection of Dead, and Rumi explains with His Poetry the spiritual meaning of it, using symbols. I had already placed that in Quran's Scripture debate.